Chip giant Intel late Thursday beat Wall Street's targets for the second quarter and offered an outlook that was above views for the current period. Intel stock jumped in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 13 cents a share on sales of $12.9 billion in the June quarter. Analysts polled by FactSet had expected Intel to lose 4 cents a share on sales of $12.12 billion. In the year-earlier period, Intel earned 29 cents a share on sales of $15.32 billion.
While Intel's second-quarter results were better than expected, its earnings have declined on a year-over-year basis for seven quarters in a row. And Intel's sales have fallen for six straight quarters.
For the current quarter, Intel expects to earn an adjusted 20 cents a share on sales of $13.4 billion. That's based on the midpoint of its guidance. Wall Street had called for earnings of 16 cents a share on sales of $13.2 billion in the third quarter. In the same quarter last year, Intel earned an adjusted 59 cents a share on sales of $15.3 billion.
Intel Stock Pops After Report
In after-hours trading on the stock market today, Intel stock surged 6% to 36.62. During the regular session Thursday, Intel stock advanced 0.6% to close at 34.55.
"Our Q2 results exceeded the high end of our guidance as we continue to execute on our strategic priorities, including building momentum with our foundry business and delivering on our product and process roadmaps," Chief Executive Pat Gelsinger said in a news release.
He added, "We are also well positioned to capitalize on the significant growth across the AI continuum by championing an open ecosystem and silicon solutions that optimize performance, cost and security to democratize AI from cloud to enterprise, edge and client."
INTC Stock Has Subpar Composite Rating
Intel's Client Computing Group saw sales decline 12% year over year to $6.8 billion in the second quarter amid continued weak sales of personal computers.
Meanwhile, sales in the company's Data Center and AI unit decreased 15% to $4 billion.
Intel stock ranks No. 17 out of 32 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. INTC stock has a subpar IBD Composite Rating of 43 out of 99.
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